Month: November 2018

The Express reported that a study by Chainalysis, a well-known crypto currency analysis company, concluded that 1,600 Bitcoin wallets own more than a third of all Bitcoin.

1,600 wallets hold more than 33% of all Bitcoin code

Whales, that’s how investors are called, who hold huge amounts of crypto currencies. This term describes the 1,600 very aptly. Unfortunately, Bitcoin code can cause problems, as they can manipulate the price with their quantities and can influence it positively but also negatively.

Phillip Gladwell of Chainalysis explained that the volatility of Bitcoin code is threatened because the Bitcoin price can only be influenced by a few people.

The best negative example of this is the trustee of the Mt.Gox exchange, who has no regard for the Bitcoin price and has hundreds of thousands of Bitcoin at his disposal.

Nevertheless, the study also came to the conclusion that some of these Bitcoin have not been moved for years. From this one could conclude that perhaps some unfortunates have lost their Bitcoin forever. Satoshi Nakamoto’s Bitcoin has also not been moved for years and will probably not be moved again. One speculates that Satoshi Nakamoto had up to one million Bitcoin.

Not only Bitcoin trader are affected

The majority of crypto currencies suffer under the same circumstances. A large number of different Bitcoin trader have a similar ‘distribution of wealth’. The ten largest EOS wallets are said to own almost half of all EOS.

However, one should bear in mind that many of the addresses, whether at Bitcoin or EOS, belong to a stock exchange. They have many coins, but they don’t belong to them, but to the users, which somewhat reduces the risk of price manipulation.

Improvement in sight?
Litecoin is also affected by this problem. More than 50 percent of all Litecoin are owned by the 400 largest Litecoin wallets.

However, analysts assume that this problem will improve in the future. With increasing acceptance and more users and wallets, the problem is expected to improve in the long run. But until that happens, concerns about possible price manipulation by whales remain.

Tether, is a crypto currency whose value is covered by the US dollar. Since June, the daily trading volume of tether has been over $3 billion, seven percent higher than the volume of ethereum.

Just a few months ago, Ethereum had the second highest daily trading volume at around $3 billion, while Bitcoin’s volume was over $5 billion. According to the current market correction, Bitcoin’s daily trading volume has dropped to $3.4 billion, while Ethereum’s volume has dropped to $1.7 billion.

Tether as an indicator

At pure crypto currency exchanges such as Binance, the world’s second largest crypto exchange behind Coinbase, which does not yet support Fiat currencies, traders mainly use USDT to hedge the value of important crypto currencies such as Bitcoin, Ethereum and other tokens against the US dollar.

The daily trading volume of USDT can be seen as a direct representation of the volatility in the crypto currency market. If the volume of tether is unusually large in a downward trend, it means that traders are selling crypto currencies to USDT, and if the volume of tether in a bull market is unusually large, it means that traders are selling their USDT reserves to purchase more crypto currencies.

Given Tether’s $3 billion daily trading volume and the fact that USDT is the second most traded crypto currency in the market, it can be said that crypto currency holders are buying more USDT as they expect the downward trend to continue.

Bitcoin Bear Market Sits Low

Willy Woo, a prominent crypto enthusiast and investor, said in late May that Bitcoin will slowly fall towards $5,500 due to the lack of volume in the market and the excessively strong bear market. The analyst thinks that Bitcoin will not fall below $5,000, though.

I DON’T NECESSARILY THINK WE’RE GOING TO FALL THROUGH THE 5000S…IT’S NOT A REPEAT, IT’S NOT MT GOX AND WILLYBOT DRIVING THE PRICE UP WITH FAKE ORDERS, WE’RE NOT RECOVERING FROM A FRAUD BUBBLE. TECHNICALLY, $5000 IS A VERY STRONG SUPPORT ZONE.”

Report confirms inventory coverage – but doubts remain
In recent weeks, Tether’s rising volume and activity have prompted investors to express concern about the market situation and USDT’s reliability. This week Washington-based law firm FSS, consisting of three former federal judges and the former director of the FBI, announced USDT’s audit results and noted that billions of dollars had been verified in Tether’s bank accounts, but this report leaves some questions unanswered